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Back in late November, my wife and I decided that we wanted to a new built-in entertainment center/cabinet put into our living room. This unit, we decided, would be more appropriate for a flat screen television than the existing recessed area where we had a large TV currently. I was planning on buying that 60" plasma flat screen TV sometime soon so the first step would be this entertainment center. We wanted this new cabinet to match up with existing shelving units on either side.

A few years prior, when we first bought this home, we contracted the owner of a company (we'll call him Dan) to build out some library shelving and cabinets in my office and to build a customized wine room for us. The work that they did at that time was outstanding so I called him in to give me some ideas and a proposal for this project. I was pleasantly surprised to hear that he could come out the next day to measure the area and give us a proposal with a drawing. (You think that had anything to do with the current state of the economy in Northern California?)

When Dan arrived, we initially discussed the current state of affairs for both of our companies. He stated that in the past year, he was forced to lay off several of his people due to the economy and building slowdown. When we turned the attention to my project, Dan, just like last time, did a terrific job designing a plan that would take care of all of the electronics, DVDs, CDs, and the flat screen while matching the bookshelves on either side. After about 30 minutes, he handed me a detailed drawing complete with measurements and all of the specifics. It looked perfect. The price for the cabinet was about $6,000 and that, to me, seemed fair. I wasn't about to "shop" him because he had my trust.

I then asked Dan (pay attention---this is a buying sign) what his timeframe looked like to do a project like this. He said that he was 6-8 weeks out and never once addressed why I asked or what timeframe that I was interested in. Since we couldn't get it done before the holidays, I simply told him I would run the plans by my wife and that we would most likely do something in the Spring. He said OK and left. (Such salesmanship.)

In fairness to Dan and his company, over the next few months I received about 3 calls (messages) from his office staff continuing to inquire about my interest in the project. Although each call had no compelling reason for me to take action, they were at least a reminder that we had a pending project to work on.

Fast forward about 5-6 months. We went ahead and purchased the 60 inch plasma (It was raining, I was bored and there was a sale) and decided to "pull the trigger" on the cabinet purchase. I shot Dan an email and asked him to re-send his drawings and proposal to me. Without a return call from Dan, I received a fax later that evening. A day or two later, (on a Thursday) one of Dan's people called to let us know that, if we were indeed ready to buy, to simply go ahead and fax back the proposal with a credit card number on it for deposit so they could get us on the calendar and begin the process. I stated that we were in and ready to go and to look for my fax by Monday.

The weekend came and went and by Monday, I was ready to move on this. Just before I was ready to fax the agreement back, my wife asked me the following, "Is this a good price?" To be honest, I had never thought about it (there is a lesson there) because Dan had done a great job at what seemed to be a fair price in the past. My wife suggested that I call a neighbor across the street who is a custom home builder to see if he knew and used a good cabinet guy that may be willing to (based upon the building slowdown) come give us a bid on the project. I promptly made the call and got the number of my friend's cabinet guy. (Why not? I'll keep my wife happy, get a second bid, and prove that Dan was the right choice---everyone wins!)

I called the new guy (we'll call him Johnny) and left a message on his cell phone. He returned my call immediately and set up an appointment to come out to look at the job 3 hours later (yes, I said HOURS, not days!) When he came out, he immediately asked one of my favorite questions, "Help me understand what it is that you are trying to accomplish." I stated that we wanted to match up this new unit to the existing bookcase shelving on either side of it. The cabinet would house all of our electronic stereo components and multimedia stuff and look as if it was custom built for the new TV.

He then got into specific detail as to what was important to us as far as TV positioning, TV mounting, cabinetry positioning, wiring, etc. He challenged several of my answers (that were based upon the suggestions made by Dan, my first cabinet guy) asking me "Why?" to several of them. By asking "Why?" after some of my answers, he made me re-assess my (Dan's) thoughts and opened me to new suggestions. After challenging several of my preconceived notions (created by Dan, his competitor) as to how this cabinet unit should be built, he stated that a different approach could be taken to meet our needs and asked if we would like to see a drawing and a quote. Although somewhat skeptical (I was still, in my mind, married to Dan's plan) we agreed. He left and told us to check our email in 3 hours and the plan would be there and, based upon our approval, he could commence work on the unit with 2 weeks.

True to his word, the plans were in my inbox after dinner and my wife liked them. He stated on the cover letter that, if we like the drawing and the proposed price, he would come back out the next day to do final measurements, secure a deposit, take paint samples, and set up a construction schedule for us. Although the drawing of the unit was a computer generated one versus the custom hand-drawn plans drawn by Dan, the finished unit did not look radically different from his. In my mind, I still had an allegiance to Dan and his plans as I had a history with Dan and trust was secure based upon that history. Although I enjoyed Johnny's approach, enthusiasm, and urgency to land the job, I still had loyalty to Dan and his company. Then we looked at the price. This unit was coming in at about $2,000---about ONE THIRD of Dan's price. We made a decision the next day over breakfast.

So....here's my question: Who do you think I went with? Dan at $6,000 or Johnny at $2,000?

The answer?I went with Johnny. The price was ONE THIRD of Dan's! Of course I went with him!

Now here's a second question: Do you think I bought on price?

The answer? Of course I bought on price! Dan wasn't even in the same ballpark as Johnny. I would be an idiot not to at least try using Johnny! And remember, he came as a referral from a friend who knew and used him several times!

Final question:Do you think Dan lost this job because of price? By now many of you must be thinking that price is what lost this job for Dan.

Although I made my decision based upon Johnny's price...Dan DID NOT LOSE THIS JOB DUE TO PRICE!!

Dan lost this job because he did not HUSTLE! He did not focus on my "need to buy." He did not express any urgency. He took my business (and my loyalty) for granted. He let precious time tick by AFTER I raised my hand and said LET'S GO! He sat on his hands and waited for me to make the moves. He wanted my business (and my $6,000) to come to him. He did not drive back out to my house to secure the job. He waited by the fax for my credit card!

Dan opened the door for us to look at his competition!!

Dan had TWO opportunities to secure this sale:

The first opportunity came when I initially brought him out to look at and bid the job. At that time, he failed to discover that I was considering getting this project done before the holidays based upon company coming. I had a track record with him as a buyer, not a looker. I had shown him that I had the financial wherewithal to get it done. Most of all, I made the call for a reason! I wouldn't be interested in getting the proposal unless I was interested in buying NOW! Even if he was busy at the time, he did not even try!

The second chance he had (and how many of us get these today?) was when I called him back and said I wanted to get the plans and pricing again because I was ready to buy. Why not hand-deliver those? If you must fax them, why not call me personally the next day to confirm receipt of them and set a time (that week) to come by and re-confirm measurements (to close the deal)? Why did he rely on phone calls, faxes, and email when he was HUNGRY for sales?

Let me make this clear one more time: Dan LOST this sale because of a lack of salesmanship and a lack of urgency and he takes FULL RESPONSIBILITY for it! If he had gotten ink on the contract sooner and purposefully CLOSED the sale, I would have never looked at Johns company!

So, how hungry are you to make those sales in your business today? How urgent are the moves that you make?

There is certainly a fine line between urgent and desperate and a true sales professional can make that difference clear to the customer. Stop blaming your high prices or your competitor's low prices! The competitor gets a shot to get in sometimes when you "take your eye off the ball" and lose that edge that makes them irrelevant. Get in the game faster and more often, exhaust any and all questions to uncover opportunity and buying signs while your there, ask for the business every time you've earned the right to do so, and stay present in the top of their consciousness by constantly remaining valuably visible! You need to turn it up! You need to HUSTLE! Every loss is twice as damaging in tougher economic times. Stop worrying about what the competition does and put 100% FOCUS on being your BEST so that the customer never considers anyone else. That is 100% in your control!

About Gerry Layo

Gerry Layo is one of the nation's most dynamic and sought after speakers offering world-class keynote addresses, seminars, and workshops throughout North America. Gerry offers his audiences 20 years of street-tested, no-nonsense business experience. Gerry comes from a fresh new perspective on the… more